Higgins said Visit Newport Beach has aggressively marketed the boat parade since it learned about the boycott.

"We decided to take the stance and say that it's very much on," she said. "This is not an event that divides us. This is something that brings us together as a community."

Nearly 90 boats are expected to participate in the parade, Higgins said.

But a bitterness remains for some longtime Balboa Island residents like Matt and Debbie Klabaugh, who canceled their boat parade party for the first time in 30 years.

"It hurts because, for us, this was an annual tradition," he said. "We've had guests come to our home from all over, including Louisiana and Washington to celebrate and watch the boat parade."

The 38-year Balboa Island resident said he was disgusted when city officials failed to listen to business owners and residents, tripled mooring fees and increased dock fees from a $100 permit fee to 52.5 cents a square foot.

"I know the boat parade will go on," he said. "But it put out our spirit."

Other residents like David Beek have a different point of view.

"My family owns moorings, commercial and residential docks," he said. "So, we got hit every which way. It was a frustrating process for sure. But I'm here to support the boat parade because it's unfair to muddy politics with a Christmas tradition."

The boat parade will continue through Sunday night. The parade starts at 6:30 p.m. each evening off Bay Island and ends about 9 p.m. For more information about the parade route and viewing points, visit christmasboatparade.com.

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